BILL ANALYSIS Ó
SB 398
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Date of Hearing: July 13, 2015
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
SB
398 (Leyva) - As Amended June 2, 2015
SENATE VOTE: 31-9
SUBJECT: Green Assistance Program.
SUMMARY: Establishes the Green Assistance Program (GAP) to be
administered by the Secretary for Environmental Protection
(Secretary) in concert with environmental justice programs.
EXISTING LAW, under the California Global Warming Solutions Act
of 2006 (AB 32):
1)Requires the Air Resources Board (ARB) to adopt a statewide
GHG emissions limit equivalent to 1990 levels by 2020 and
adopt regulations to achieve maximum technologically feasible
and cost-effective GHG emission reductions.
2)Establishes the Greenhouse Gas Reduction Fund (GGRF); requires
that all funds, except for fines and penalties, collected
pursuant to a market-based mechanism be deposited in the fund;
and requires the Department of Finance, in consultation with
ARB and any other relevant state agency, to develop a
three-year investment plan for the GGRF.
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3)Requires that the GGRF be used to facilitate the achievement
of GHG emissions reductions in the state consistent with AB 32
and the investment plan.
4)Requires the investment plan to allocate a minimum of 25% of
the funds to projects that benefit disadvantaged communities
and to allocate 10% of the funds to projects located within
disadvantaged communities.
5)Requires ARB, in consultation with the California
Environmental Protection Agency (CalEPA), to develop funding
guidelines for administering agencies receiving allocations of
the GGRF that include a component for how agencies should
maximize benefits to disadvantaged communities.
THIS BILL:
1)Establishes GAP, and requires the Secretary to administer the
program in concert with environmental justice programs.
2)Requires GAP to provide technical assistance to small
businesses and small nonprofits, as defined by the Secretary,
and disadvantaged communities applying funding from the GGRF.
The technical assistance may include:
a) Basic information on available programs, eligibility
requirements, and deadlines; and,
b) Referrals to designated contact people in agencies
administering the programs.
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3)Requires the Secretary to conduct outreach activities to
inform eligible entities about the GAP. Authorizes the
Secretary to coordinate outreach activities with other state
agencies, local agencies, and nonprofits.
4)Requires that GAP use existing resources appropriated by the
Legislature in the annual Budget Act.
FISCAL EFFECT: According to the Senate Appropriations
Committee, this bill creates cost pressures in the hundreds of
thousands to low millions of dollars from the General Fund or
the GGRF to CalEPA for technical assistance and outreach.
COMMENTS:
1)This bill. According to the author:
Currently, there is no single place for small communities
and businesses to turn to for assistance in accessing funds
for mitigating the impacts of poor air quality. Housed at
CalEPA, the GAP will provide small communities and
businesses with information on all of the funding available
and assistance on how to apply for funding at various
agencies. As more funding becomes available, the state
must ensure that every city and business has the same
ability to participate in creating healthier neighborhoods.
2)AB 32. As part of AB 32's direction that ARB adopt a
statewide GHG emissions limit equivalent to 1990 levels by
2020 and adopt regulations to achieve maximum technologically
feasible and cost-effective GHG emission reductions, AB 32
requires ARB to prepare and approve a Scoping Plan at
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five-year intervals.
The first Scoping Plan, adopted by ARB in 2008, described the
specific actions ARB and others must take to reduce statewide
GHG emissions to 1990 levels by 2020. Pursuant to AB 32, the
reduction measures identified in the Scoping Plan had to be
proposed, reviewed, and adopted as individual regulations by
January 1, 2011, to become operative beginning on January 1,
2012. According to ARB, a total reduction of 80 million
metric tons (MMT), or 16% compared to business as usual, is
necessary to achieve the 2020 limit. Approximately 78% of the
reductions will be achieved through identified direct
regulations. ARB intends to achieve the balance of reductions
necessary to meet the 2020 limit (approximately 18 MMT)
through a cap-and-trade program that covers an estimated 600
entities.
In May 2014, ARB adopted a Scoping Plan update. The Scoping
Plan update discusses the objective of achieving an 80%
reduction by 2050 and the need for a midterm target, but does
not propose or adopt a specific target. According to ARB, the
update defines ARB's climate change priorities for the next
five years and sets the groundwork to reach California's
long-term climate goals.
The 2014-15 Budget Act allocates cap-and-trade revenues for the
2014-15 Fiscal Year and establishes a long-term plan for the
allocation of cap-and-trade revenues beginning in Fiscal Year
2015-16. The Budget continuously appropriates 35% of
cap-and-trade funds for investments in transit, affordable
housing, and sustainable communities. Twenty-five percent of
the revenues are continuously appropriated to continue the
construction of high-speed rail. The remaining 40% will be
appropriated annually by the Legislature for investments in
programs that include low-carbon transportation, energy
efficiency and renewable energy, and natural resources and
waste diversion. In addition to reducing GHG emissions, 25%
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of the proceeds from the GGRF must also go to projects that
provide a benefit to disadvantaged communities, as identified
by the California Environmental Protection Agency (CalEPA). A
minimum of 10% of the funds must be for projects located
within those communities.
In his January 5, 2015 Inaugural Address, Governor Brown
announced the following objectives: 1) Increase the amount of
renewable energy used in California from 33% to 50%; 2)
Reduce petroleum use in cars and trucks by up to 50%; and, 3)
Double the efficiency of existing buildings and make heating
fuels cleaner.
3)Disadvantaged communities. In October 2014, CalEPA released
its list of disadvantaged communities based on the California
Communities Environmental Health Screening Tool
(CalEnviroScreen), a tool that assesses all census tracts in
California to identify the areas disproportionately burdened
by and vulnerable to multiple sources of pollution. Areas
identified as disadvantaged by CalEnviroScreen 2.0 include the
majority of the San Joaquin Valley; much of Los Angeles and
the Inland Empire; pockets of other communities near ports,
freeways, and major industrial facilities such as refineries
and power plants; and large swaths of the Coachella Valley,
Imperial Valley and Mojave Desert.
Each of the programs administering funds from the GGRF have
separate guidelines and grant proposal request documents on
their respective websites. Eligibility criteria and
application processes vary, as do recommendations about
working with the administering agency to develop proposals or
applications. For those small organizations and disadvantaged
communities lacking experience in this area, assistance such
as that proposed by this bill may help them successfully apply
for and utilize the funding available.
REGISTERED SUPPORT / OPPOSITION:
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Support
American Lung Association in California
Asian Pacific Environmental Network
Breathe California
California Bicycle Coalition
California Environmental Justice Alliance
California League of Conservation Voters
Clean Water Action
Climate Resolve
Coalition for Clean Air
Environmental Defense Fund
Leadership Counsel for Justice and Accountability
Lutheran Office of Public Policy, California
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Move LA
National Resource Defense Council
Physicians for Social Responsibility
ReLeaf
Sierra Club California
Strategic Concepts in Organizing and Policy Education
Trust for Public Lands
Union of Concerned Scientists
Valley Clean Air
Opposition
None on file
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Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)
319-2092